Thomas Cycles manufactures chainless bicycles. On March 31, Thomas Cycles had 200 bikes in inventory. The company has a policy that the ending inventory in any month must be 20% of the following month’s expected sales. Thomas Cycles expects to sell the following number of bikes in each of next four months:
April................................................................................................... 1,000 bikes
May.................................................................................................... 1,100 bikes
June.................................................................................................... 1,300 bikes
July..................................................................................................... 1,200 bikes
Prepare a production budget for the second quarter, with a column for each month and for the quarter.